The assessee was already paying royalty/fees for the use of Trademarks, which is embedded under the TTA and hence further payment under the TLA was not warranted. The assesse was earlier paying for use of contractual Trademarks and there was no need to pay a further amount for use of the Trademarks. Such an approach is considered erroneous and no addition in made. Matter remanded. (AY. 2011-12, 2012-13, 2013-14)
Knorr Bremse Systems For Commercial Vehicles India Pvt. Ltd. v. Dy. CIT (2020) 205 TTJ 736 (Pune.)(Trib.)
S. 92C : Transfer pricing-Arm’s length price-Royalty fees for use of trade mark-Matter remanded.